Concealment

Concealment, or "suppressio veri," is where a party to a contract does not disclose some fact relating to it to the injury or prejudice of another. In order to amount to a fraud, it must be the suppression or non-disclosure of facts which one is bound to disclose to another, either legally or equitably, the latter being entitled to the possession of such facts. An important distinction occurs between representations which are intrinsic, forming the very essence of a contract, and those which are extrinsic, forming no part of it, although offering inducements to enter into it, or affecting the value of the property contracted for. As to the former, the caution "caveat emptor" applies, unless there be some artifice to disguise the subject of the contract or some warranty as to its quality; a purchaser is bound by the sale, although there may exist extrinsic defects in it known only to the vendor which greatly affect its worth.